The Irish Limited Partnership

The right Tax Planning Solution

Ireland is a jurisdiction characterised by a standard level of taxation. However, Irish legislation provides an excellent opportunity for the registration and operation of companies with a zero tax rate namely, the Limited Partnerships (LPs).

An Irish Limited Partnership (LP) with foreign members, if it does not engage in any business within Ireland and does not derive income from Irish territory, is not subject to taxation in Ireland. Under Irish tax laws, an LP is not treated as a distinct taxable entity. Instead, the founders are responsible for paying taxes based on the profits earned by the LP, and this taxation is carried out in accordance with the tax regulations of their respective places of residence. To illustrate, consider an Irish LP with a General Partner residing in an offshore location, such as the Seychelles, which exclusively generates income outside of Ireland. In this scenario, the LP is exempt from Irish taxes, and any applicable taxes are paid by the members in their respective countries of residence, in accordance with the local legislation.

Despite the favorable tax regime enjoyed by LP companies, it’s important to note that these companies are still obliged to prepare financial statements. Additionally, the relevant Partnership Tax return must be filed annually with the Irish Tax Revenue.

Irish Partnership Act

For foreign investors contemplating the establishment of companies in Ireland, there is a diverse range of business structures to choose from, including partnerships. In the Irish legal framework, several types of partnerships are recognized:

The Partnership Act of 1980 governs general partnerships in Ireland, offering foreign investors a variety of benefits, including tax advantages and reduced disclosure requirements. If you require guidance on setting up a general partnership, our Irish company formation experts are available to provide their services.

Establishing a General Partnership in Ireland

Irish general partnerships can be categorized as either informal partnerships formed for an indefinite period or formal partnerships with limited durations. These partnerships may operate under one of the partner’s surnames or adopt a distinct business name, which must be registered with the Irish Trade Register. It’s crucial to note that partners in an Irish general partnership carry unlimited liability, as this business entity does not possess a separate legal identity apart from its owners. For those interested in establishing such a partnership, our Ireland company formation specialists can offer their guidance.

Taxation of General Irish Partnerships

From a taxation perspective, the Irish general partnership offers significant advantages. While the partnership must register for tax purposes with the Revenue Commissioners, each partner is issued a distinct tax registration code, and they are taxed individually based on their income.

For comprehensive information on the benefits of forming a general partnership in Ireland, feel free to reach out to our Irish company formation specialists. Additionally, our experts can provide tailored accounting services to suit your needs.

Irish Limited Partnerships

Notable Tax Planning Benefits for Irish Limited Partnerships

From a tax perspective, Irish general partnerships present a highly advantageous company structure. Although the partnership must register for tax purposes with the Revenue Commissioners, each partner is issued a unique tax registration code, and they are individually taxed on their income.

For comprehensive insights into the advantages of establishing a general partnership in Ireland, please don’t hesitate to contact our Irish company formation experts. You can also rely on our specialists to provide customized accounting services tailored to your specific requirements.